Mortgage Rate Dip Gives Home Buyers More Good News
Mortgage interest rates receded again last week, providing more good news for families who are pursuing home buying opportunities in today’s buyers market.
Materials put at the disposal of NAHB members last week, “It’s a Great Time to Buy,” emphasize that home buyers have greater opportunities today than they have had for several years, with prices leveling off, mortgage interest rates remaining near their historic lows and a relatively strong economy continuing to create job and income growth.
According to Freddie Mac's Primary Mortgage Survey, mortgage rates for the week ending on Thursday, Nov. 2 reversed a short-lived upward turn. The 30-year fixed-rate mortgage averaged 6.31%, down from an average of 6.40% during the previous week, bringing them to the same level they were exactly a year earlier.
One-year Treasury-indexed ARMs averaged 5.53% for the week, down from 5.60%. They were 5.09% a year earlier.
Freddie Mac Chief Economist Frank Nothaft attributed the week’s decline to lower than expected third quarter figures for the Gross Domestic Product. He said that lower rates could produce “a spurt of refinancing by those who want to get out of ARMs that are scheduled to reset in the next year while interest rates are comparatively low.”
Potential buyers who sit on the fence in the hopes of “timing the market” and making their purchase at the exact time when the downturn hits bottom could miss out, according to NAHB, because the peaks and valleys of the housing cycle are just as difficult to predict with pin-point precision as the stock market, and conditions will vary by location.
Those who purchased homes during the previous housing downturn in the early 1990s came out big winners. The median price of a new home in 1991 was $120,000. In 2005, it was $240,900 — just over double in price.
Resources in the free, members-only buy-now package include:
- Talking points, Q&As and a sample press release
- Sample op-eds, letter to the editor and newspaper columns
- An economic backgrounder
- Print and radio advertisements
- Public relations advice on getting the message out through the media, events and Web sites
- A home builders association guide on how to make the most of the package
- Sample member communications, including a newsletter article and tips for engaging members in the campaign
As part of the effort, resources have been included that are directly available to consumers at www.nahb.org/timetobuy.
For more information, e-mail Niki Clark at NAHB, or call her at 800-368-5242 x8061.